The statement “the sum of the parts is greater than the whole” is a well known and is usually true. About 6 years ago, my agency PRDA proposed to one of the largest hotel chains a strategy to create an immensely powerful digital network to promote their brand, manage CRM and collect consumer data at a level never before achieved with a cost that actually saved them money. Out of this comes a model to (I don’t like this word) DISRUPT the advertising landscape for SME’s in a revolutionary way. I share the highlights of the proposal here because the hotel industries structure helped to create the framework, technology and expertise for the cooperative social media/ digital marketing model. Cooperative marketing is the next revolution for SME’s. Numbers are easiest to understand and communicate the benefit of this model quickly
Hotel chain has 5000 hotels around the world
Each hotel may have:
Each hotel has approximately 10,000 real Fans. These are carefully cultivate Fans that have opted in based on interest in content and brand, not incentives or purchased.
These 10,000 Fans have an average organic reach at any given time of 50,000 people.
One message sent out:
50,000 * 5,000 = 250,000,000 organic views
Intensify application designed and built by PRDA
Centralized team providing:
Content and brand control from centralized team
Monitoring and analytics
Hotels provide 8 hours per month
Existing skill sets no new hires
Largest earned “owned” media network; global
Fast and responsive (minutes not months)
Loyalty, viewers of content and “opt in”
Cost per message US$13,000
it is important to note that whereas the cost point is unattainable through any other media release, the brand control, ownership of the network, quality of viewers, and data are the real benefit
So how does this model designed for hotels benefit SME’s? The answer is simple, “the sum of the parts is greater than the whole”. In the above model, replace each Hotel with an SME. There are currently 25,000,000 SME’s active on Facebook alone. They all face similar difficulties:
Lack of resources and time
Skills for marketing/ digital marketing low to none
When the marketing potential of each is maximized using PRDA’s Intensify each SME receives the benefit of being part of a large network with efficiency, low cost and high reach with minimal contribution:
8 hours per month
approximately US$600 dollars per month
Cheaper than print ads and more effective
25 million SME’s + 8 hours effort + US$600 per month + Facebook + Twitter + Sina Weibo + Pinterest + Instagram + Blogs + SERP =
largest cooperative advertising network based on organic
I sit on the edge of China in Hong Kong and I see the carpet baggers lining the streets telling fortune seekers from the West of cities paved of gold. Or in modern times where people have so much money the carry it around in duffel bags and the government needs to warn them of displaying too much wealth as it may be hazardous to their health. So is any of it true? Well like all good stories there is some truth and some fiction. Let’s hope for the sake of the global economy that there is more than a little fiction. A recent report by http://www.JingDaily.com suggests that per capita income for the majority of Chinese citizens will double to between USD16 – 34k per year. That may not WoW many jaded Westerners as far as salaries go, but it makes a very big statement none the less. For global purchasing power, the individual consumer in China can now afford most anything.
Only a few years back the wage was significantly below what is considered the U.S. poverty level. Because of the cost of living in China these people were not necessarily in poverty per se. However, being below the “poverty line” definitely meant access to many non-essential purchases were beyond reach. Now that is changing. India about 10 – 15 years saw a rapid increase in wages due to tech companies and BPO. But in India only a small segment of the population benefited. But in China it is estimated that a huge portion of the population will see this benefit. This huge portion of 1.2 billion people doubling their standard of living and now legitimately having access to goods and services will dramatically change the global economy. First off, those beloved trips to Walmart by Americans pushing their SUV sized shopping carts are probably going to become fewer. Simple business rules dictate that costs need to be passed on and with salaries getting bigger in China, the rest of world’s shopping carts will get smaller.
China is like a new star being born. It is a huge gaseous all encompassing mass that seems to touch everything and then it starts to contract pulling back on itself getting denser and hotter until from its own weight fusion starts and at its core an almost endless cycle of sustained energy created. While still generating huge outward energy, keeping smaller satellites in its grasp but needing nothing but itself to maintain. China’s policies have been in place for thousands of years with little change. The Middle Kingdon has little interest in what lies beyond its borders except for those that pay them homage or to which they grant oblige by providing a taste of their magnificence. Today is not different. The Great Firewall is stronger than the Great wall ever was.
And China’s control of itself and influence on rest of world is complete. If trade export with China stopped the global damage would be far worse outside China than within. China is preparing with great ferocity for a China only world again. Good goods going in for sale must pass arbitrary standards, modern communication apps are denied, full stop and censure ship of the few social communication apps keep conversations polite or they stop! But China is taking much greater strides than this. They are building an internal economy that exists with complete absence from imports. During the recent baby milk scare, it was believe that imports of foreign (safe) baby formula increase huge as parents did what ever they could to safe guard their one baby. But government intervention through barriers and rumors actually forced a 2.2% decrease in foreign baby formula during this time and increased local sales. A recent article in the JIng daily has shown that local brands are quickly trumping foreign luxury brands for the cash of the China consumer. China customers have long demonstrated a preferred taste for local brands with many Western companies having failed to break into the China Market. But this is different. Now with greater access to brand information, outside media and extensive travel, they are still choosing domestic brands. China is a country imploding on itself. In many ways it always has, but this new financial and manufacturing strength may finally create a globe of 2 worlds.